AerCap executed 114 aircraft transactions in Q1/18, including 28 widebody transactions. The aircraft lessor also reported $265.4 million in net income during the quarter.

AerCaps’s Q1/18 net income compared with $261.2 million for the same period in 2017. The increase in net income was primarily driven by an increase in net gain on sale of assets, partially offset by the impact of the Air Berlin and Monarch Airlines lease terminations in the second half of 2017, as well as by lower other income.

Basic lease rents were $1,032.9 million for Q1/18, compared with $1,067.1 million for the same period in 2017. The decrease was primarily due to the sale of mid-life and older aircraft during 2017 and Q1/18 and lower utilization as a result of the Air Berlin and Monarch Airlines lease terminations in the second half of 2017.

Net gain on sale of assets for Q1/18 was $89.3 million, relating to 21 aircraft sold and two aircraft reclassified to finance leases, compared with $47.3 million for the same period in 2017, relating to 21 aircraft sold and three aircraft reclassified to finance leases. The increase was primarily due to the composition of asset sales.

Other income for quarter was $9.5 million, compared with $32.5 million for the same period in 2017. Other income for Q1/17 included contractual payments related to a lease termination agreement with a lessee.

Additionally, AerCap reported that approximately 95% of new aircraft deliveries through 2019 and approximately 80% through 2020 are leased, with an average of 6.9 years remaining on lease terms. AerCap also noted a 98.3% fleet utilization rate for Q1/18.

Other highlights from Q1/18 included:

• The closing on $2.9 billion of debt financing, including $1.15 billion senior unsecured notes offering.
• $10.8 billion of available liquidity and adjusted debt/equity ratio of 2.8 to 1.
• A book value per share of $59.60, an increase of 16% since March 31, 2017.
• The repurchasing of 5.9 million shares in Q1/18 for $305 million.
• A new $200 million share repurchase program authorization, which will run through September 30, 2018.

Aengus Kelly, CEO of AerCap, said, “I am pleased to report that the AerCap platform delivered another quarter of strong operating and financial results, with earnings per share of $1.72 and net income of $265 million. Our high level of lease placement activity reflected robust demand for our aircraft, and we continued to deploy excess capital to create value for our shareholders.”